On-Bill Financing

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Get Interest-Free Financing on Energy-Efficiency Upgrades

Want to make energy-efficient improvements, but need help financing? Your business could qualify for our On-Bill Financing Program (OBF).

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Program participants will enjoy:

  • 0% interest loans 
  • No fees
  • Convenient loan repayment through your monthly SCE utility bill 

You could also receive additional benefits from your project, including long-term energy savings and financial incentives for installing qualified energy-efficient equipment (restrictions apply). 

Download Fact Sheet >

We’ll Work with You from Application to Financing


STEP 1 - Submit your OBF application for credit evaluation and approval.


STEP 2 - Once approved, you can install your project and submit your Installation Report. 


STEP 3 - After inspecting and approving your installation, we’ll process your incentive payment.


STEP 4 - Finally, we’ll distribute your OBF loan funds and you’ll begin monthly repayments.

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Who is eligible?

All SCE Business Customers are eligible to apply. To participate in OBF, you’ll need to:

  • Apply for one or more qualifying incentive programs 
  • Have an active SCE account
  • Be in good credit standing with SCE  
  • Confirm that you would only undertake this project with the help of an OBF loan 

To participate in OBF, you’ll need to: 

1. Participate in one or more of the following SCE programs: 

  • Capital projects under the Strategic Energy Management Program

Or participate in one or more of the following Third Party Energy (EE) Programs for SCE Customers:

  • Commercial Energy Efficiency Program
  • Industrial Energy Efficiency Program
  • Multifamily Energy Efficiency Program
  • Illuminate California
  • California Energy Wise
  • State of California Energy Strategy and Support Program

Note: SCE is not, and shall not be deemed to be, a party or guarantor to any agreement between a customer and any third-party implementer. SCE has no contractual obligation, directly or indirectly, to the customer as it relates to the third-party energy efficiency programs.

Learn more about Third Party Energy (EE) Programs for SCE Customers.

2. Be an SCE business customer with:

  • A creditworthiness score of Low to Medium Risk Class
  • No previous OBF loan defaults

Customer must confirm that the financed project would not have been undertaken in the same capacity if it was not for the availability of the OBF loan. 

Other terms and conditions apply. 

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Participation in a qualified incentive and/or rebate is a condition of OBF participation and approval. OBF funding is available to fund the remaining cost of qualifying energy efficiency measures after applicable incentives and/or rebates have been paid.

The Maximum Loan Amount for a given project eligible for OBF is the Project Cost (as evidenced by a detailed invoice). The estimated energy savings provided by the customer in the project application will be used as the basis for the initial loan reservation amount. The SCE-approved estimated energy savings will be used as the basis for the final loan calculation. For a more detailed explanation of how loan amounts are calculated, refer to the “How are Loan Term and Approved Loan Amount Calculated?” FAQ.

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Loan limits vary by customer segment. Loan limits will apply to the Service Account (SA), so customers with multiple SAs may take loans under each SA up to the maximum amount for that customer’s segment, subject to meeting all the terms and conditions

The following table sets forth the loan funding limits and terms for different types of Business Customer categories:


Exception Caps: Maximum $4,000,000 per Service Account for all customer segments. Exception caps require SCE management approval on a case-by-case basis. Other restrictions may apply. 

Bundled OBF Loans: Government and Institutional customers can bundle multiple service accounts under the same Customer Account Number, at one or more premises into a single OBF loan. Individual SA OBF loan applications can be bundled to meet the loan minimum. Customer segment loan limits apply.  

NOTE: If a customer chooses to bundle its OBF loans, it must complete all projects related to all of the bundled loans before any loan funds are distributed.

Refer to the Fact Sheet for additional OBF Program information, including a loan calculation example for a customer in the government segment.

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The maximum loan amount is the difference between the final approved total project cost of the installed, eligible energy efficiency solutions, and the incentives paid by SCE for the energy efficiency project. Loan funds must be used for the purchase and installation of qualified energy efficiency equipment. 

The factors determining how the final approved loan amount is calculated are: 

  1. Estimated Bill Neutrality: The monthly loan repayment amount is calculated to be approximately equal to the estimated monthly dollar savings on your SCE utility bill as a result of your energy efficiency project.  

  2. Loan Amount Limits: The loan amount for any one service account cannot exceed the established loan term limits by customer segment. 

The factors determining the final loan term are: 

  1. The effective useful life of the measures being financed. The effective useful life (EUL) of a Measure or Solution is an average length of time a Solution may be operational, based on historical analysis. If there is more than one Solution installed, the EUL of all installed Solutions will be that of the Solution which contributes the greatest kWh savings for the project.

  2. Loan Term Limits: The OBF loan term will not exceed the customer segment cap or the estimated bill neutrality calculation.  

You may elect to choose a shorter term than allowed by your segment cap or indicated by the bill neutrality calculation, and you may repay the loan in its entirety at any time with no penalty or additional cost. Pre-payments for less than the remaining loan balance is not permitted. 


Example #1. A Business Customer is seeking to install an energy efficiency project that meets the loan amount limits and term provisions of OBF :

* Estimated 5,000 kWh/month times Customer’s average billing rate of $0.15/kWh.

This project would qualify for a $35,000 OBF loan, because:
1. The loan does not exceed the Service Account loan cap of $250,000;
2. The Effective Useful Life  of the project is greater than the loan term; and
3. The loan will be repaid within the 5-year loan term limit for Business Customers.

Example #2. A Business Customer is seeking to install a project that does not fit within the Loan Amount and Loan Term provisions; therefore, its OBF amount would be modified:

* Estimated 2,500 kWh/month times Customer’s average billing rate of $0.15/kWh.

This project would not qualify for a $35,000 OBF loan because:

  1. Although the loan is within the Service Account loan cap of $250,000; and
  2. The Effective Useful Life of the project is greater than the loan term;
  3. The loan cannot be repaid within the 5-year maximum loan term limit for Business Customers, or within the 72 month Effective Useful Life of the measures. Thus the OBF loan application would be modified by adjusting the loan amount to $27,000 so that the monthly payment of $375 will pay off the loan within 72 months.

Customers will be required to complete the supplemental Project Matrix Form after submitting their OBF application, and again when providing their installation report. The monthly loan repayment amount will be approximately equal to the estimated monthly dollar savings Customers are expected to receive through their SCE utility based on the energy savings proposed on the supplemental Project Matrix form. Any misrepresentation of energy savings could affect the Customer's overall energy bill.

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Customers requesting a change of the company representative’s name on their OBF application prior to receiving the loan funds, will be required to complete an OBF Name Change Form. Additionally, loan approval will be dependent on a new Touch Point Checklist to be completed by the new applicant. This is required to ensure the person signing for the loan is aware of the OBF terms and conditions. 

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1. Applicants seeking to change an application in ways that impact energy savings, or bill neutrality, will be required to submit a new application. No amended applications will be accepted.

2. An Authorized Customer representative (as specified in the original incentive/rebate and OBF application) must sign a copy of the final energy efficiency project invoice. The signed final invoice will be used as the basis for evaluating project costs for the purposes of the final OBF loan amount calculation. 

3. Loan Proceeds will be issued to end-use customers in all cases.

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Bundled OBF Loan - Aggregated OBF loan comprised of two or more Governmental and Institutional loans.

Business Customers - Includes any non-residential customers.

Site - The area of land serviced by a specific electric meter.

Solution – Energy efficiency equipment.

Third Party Energy Efficiency Program - An Energy Efficiency program designed and implemented by third-parties independent of SCE. Under these programs energy efficiency services, products, compensation and/or installation is provided directly or indirectly from third party implementers, based on individual agreements between the customer and such third-party implementers.

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General Program Reference 

Customer is subject to all Program Terms and Conditions and should therefore read, understand, and agree to these requirements prior to submitting an Application. 

By submitting an OBF application, the Customer agrees to the Terms and Conditions for participation in the On-Bill Financing (“OBF”) Program (the “Program”) as set forth herein and in the On-Bill Financing Program Manual.


The Terms and Conditions of the On-Bill Financing Program may be modified or terminated without prior notice. Customer agrees to the Terms and Conditions effective at the time Application is submitted by the Customer. 

OBF – Program Description 

The Program is offered by Southern California Edison Company (SCE) to qualified SCE non-residential service customers and multi-family property customers (Customer) to offset the cost of purchasing and installing eligible energy efficiency equipment (Solutions). Through OBF, qualified Customers will receive zero percent (0%) interest, no-fee, unsecured financing for Solutions that qualify for an eligible SCE energy efficiency program. Loans totaling over $250,000 per Service Account will be issued without incentives or rebates. Financing is available within the On-Bill Financing Program loan limits for up to one hundred percent (100%) of the actual installed cost of approved Solutions, less rebates or incentives received by Customer from SCE under applicable Eligible Program(s). 

OBF - Key Loan Terms  

This section provides a non-exhaustive list of some of the key Loan Terms contained in the On-Bill Financing Loan Agreement, for information purposes only. 

Amount Financed and Loan Terms. The OBF Loan Agreement shall set forth the amount financed, based on the calculations described in the OBF Application, the loan term, payment amounts, and service accounts to be billed.

Prepayment and Partial Payments. Customer may pay the Loan in monthly installments or pre-pay the entire Loan in one lump sum without penalty, but pre-payments for less than the remaining balance is not allowed. Any partial payments will be applied in equal proportion to the energy charges on the bill and the Loan, and the Customer will be considered to be delinquent and in default of both the energy bill and the Loan. 

Late Payments. No late payment charges or interest will be assessed for delinquent payments on the Loan Obligation. However, SCE may assess late payment charges for delinquent payments of energy charges pursuant to SCE’s Rule 9 which is incorporated herein by reference. 

Returned Payments. SCE may require payment of a Returned Check Charge for any check returned from Customer’s financial institution unpaid. The Returned Check Charge will also apply to any forms of payment that are subsequently dishonored. 

Discontinuance of Service. Amounts due under the OBF Loan Agreement will be amounts deemed due under each SCE utility bill to the Customer’s Service Account(s), and a default under the OBF Loan Agreement will be treated as a default under the Customer’s Service Account(s). Customer’s Loan Obligation (as defined in the OBF Loan Agreement) is subject to the discontinuance provisions of SCE’s Rule 11, Discontinuance and Restoration of Service, Section B, Nonpayment of Bills or Summary  


  • Breach and Acceleration. SCE may determine the OBF Loan Agreement to be breached and Customer to be in default if Customer: (1) sells, assigns, or otherwise transfers ownership, possession, or title of the Site or the  Equipment, (2) fails to pay the Monthly Payment amount when due, (3) closes, discontinues, or otherwise causes the termination of the Service Account(s), or (4) fails to complete the final energy savings verification for Normalized Metered Energy Consumption (NMEC) verified projects, or (5) otherwise breaches the OBF Loan Agreement, and the breach is not cured as specified therein. A breach and default as set forth in this section shall not be subject to any additional cure period. Following a breach as set forth in this section, SCE shall have the right to declare the entire unpaid balance of the Loan Obligation immediately due and payable.

Description of Additional OBF Loan Agreement Provisions. (1) the OBF Loan Agreement shall continue in effect until the Loan is paid in full; (2) Customer may not assign its rights or delegate its duties under the OBF Loan Agreement without SCE’s express written consent; (3) the OBF Loan Agreement can only be modified or amended through a signed writing by both Customer and SCE, except that, in any given month that Customer does not make full payment on the Loan Obligation, SCE may make payment arrangements, in SCE’s sole discretion; and (4) the Customer must represent and warrant that he or she is duly authorized and has the legal capacity to execute and deliver the OBF Loan Agreement on behalf of Customer, and to perform Customer’s obligations under the OBF Loan Agreement. 

Conflict Between Terms 

If there is any conflict between this OBF Application and the OBF Loan Agreement, the OBF Loan Agreement shall control. 

Limitation of Funding 

Funding for the Program is limited and is offered on a first-approved first-served basis until funding is fully reserved, expended, or the Program is terminated, whichever comes first. Customer understands that this application is for approval of a reservation of loan funds only. Issuance of OBF loan funds is conditioned on Customer's installation of approved Solutions in accordance with the selected Eligible Program(s), the satisfaction of all Eligible Program requirements, and execution by Customer of the On-Bill Financing Loan Agreement. 

Incentive Waiver Acknowledgement for loans over $250,000 per Service Account 

Customers receiving loans over the amount of $250,000 per service account will not be eligible for other rebates or incentives, even though customers are required to meet eligibility criteria for the relevant Eligible Program(s) in order to participate in OBF. 

Customer Provided Project Information 

Customer is required to complete the supplemental Project Matrix form after submitting its OBF application, and again when providing their installation report. The monthly Loan repayment amount will be approximately equal to the estimated monthly dollar savings Customer is expected to receive through its SCE utility bill based on the energy savings proposed on the supplemental Project Matrix form. Any misrepresentation of energy savings could affect the Customer's overall energy bill.

Verification and Certification

Customers must certify that the financed project would not have been undertaken in the same capacity if it was not for the availability of the OBF loan and that all the information provided in the OBF Application is true, correct, and complete. Customers must meet all eligibility criteria and requirements of both the OBF program and my selected Eligible Program(s) in order to participate in OBF. Customer understands SCE reserves the right to request additional information to verify eligibility for OBF.

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Help Us Create a Clean Energy Future

Your energy-efficiency projects help us get closer to our goal of a carbon-free future in California. 

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This program is funded by California utility customers and administered by Southern California Edison under the auspices of the California Public Utilities Commission. This program is offered on a first-approved, first-served basis and is effective until funding is expended or the program is discontinued by the California Public Utilities Commission. The website provides information for the customers’ convenience; however, the program terms and conditions are set forth in the On-Bill Financing application and in the event of a conflict between the Loan Agreement and this website, the terms of the Loan Agreement shall govern. This program may be modified or terminated without prior notice. 

1Premise is defined as a building or a single location that provides a particular service or is used for a particular purpose.

2Bill neutrality, according to the CPUC’s May 18, 2012 decision guiding the 2013-2014 portfolio, refers to the situation in which the combined monthly or annual cost of energy efficiency loan repayments and the post-project utility bill do not exceed the amount of the original utility bill prior to the project being undertaken. See www.cpuc.ca.gov for more information.